the Death of Pellets

[Pellet-King]

http://www.cnbc.com/2015/12/23/oil-...ml?__source=msn|money|headline|story|&par=msn

 

[Wilbur Feral]

Well, for you, anyway.

 

[bogieb]

If you use oil. And if you believe prognosticators have a crystal ball. I don't, and I don't, so that article means exactly zero to me.

 

[TimfromMA]

Yes, everyone please stop buying pellets so I can get them cheaper.

 

[UpStateNY]

Yes, everyone please stop buying pellets so I can get them cheaper.

What TimfromMA said. If you must buy pellets, buy the cheap crap pellets and leave me the good stuff.

 

[tiger]

Maybe someone needs to invent an oil-fueled stove and/or insert.

 

[Deezl Smoke]

It does not matter what a barrel of crude costs. There is no law that says the oil companies can only make a small margin. If the demand is there, the retail price will/can stay way up.

 

[alternativeheat]

It does not matter what a barrel of crude costs. There is no law that says the oil companies can only make a small margin. If the demand is there, the retail price will/can stay way up.

Yeah, the perfect example being the pellet fuel market...

 

[alternativeheat]

Maybe someone needs to invent an oil-fueled stove and/or insert.

I said something similar a few weeks ago, someone replied, " I have one, it's called a furnace"..

 

[alternativeheat]

The price of oil here now is $1.56, down another 11 cents from 1 week ago.

 

[Deezl Smoke]

Yeah, the perfect example being the pellet fuel market...

Pellets are made from a renewable resource material. Most of the make up of pellets are a waste or bi-product of some other manufacturing processes. Anyone can start making pellets at any time.

Oil, not so much.

 

[TimfromMA]

I said something similar a few weeks ago, someone replied, " I have one, it's called a furnace"..

That may have been me.

 

[blades]

ah but the input of energy to create pellets, ethanol and such consumes and sometimes exceeds the expected savings which has been the bain of alternative energy for years.

 

[alternativeheat]

Pellets are made from a renewable resource material. Most of the make up of pellets are a waste or bi-product of some other manufacturing processes. Anyone can start making pellets at any time.

Oil, not so much.

This is what you said: " There is no law that says the oil companies can only make a small margin."

Answer this: state the law that says it's any different for the pellet industry.

To me locally, where I live, that pellet market seems to still be running on inflated prices. It's sure not the oil companies setting the pellet prices as they are now. 2016 will be what it is and that remains to be seen. But some small start up pellet companies right now at this very moment are possibly wondering why they got into pellets at all. Eventually the weather is going to get into all the sitting pellets in the various yards around the country.

 

[mass_burner]

This report is from OPEC. It's them saying "we can keep doing this for a long time, so you [frackers] might as well fold now." If OPEC felt secure with their market share, they'd cut production tommorow.

 

[unbidden]

I look at my pellet stove with the same philosophy as my snow plow. If I need the plow it's there, but I'll be more than happy if the blade stays in the garage all winter

 

[Deezl Smoke]

This is what you said: " There is no law that says the oil companies can only make a small margin."

Answer this: state the law that says it's any different for the pellet industry.

To me locally, where I live, that pellet market seems to still be running on inflated prices. It's sure not the oil companies setting the pellet prices as they are now. 2016 will be what it is and that remains to be seen. But some small start up pellet companies right now at this very moment are possibly wondering why they got into pellets at all. Eventually the weather is going to get into all the sitting pellets in the various yards around the country.

There is no law for pellets. either. My point was, anyone can produce pellets with a very small investment. Whereas only the public traded oil companies can acquire and refine oil.

As technology keeps upgrading pellet stove designs, perhaps we will soon see a stove that can efficiently burn low grade pellets. When that happens, we will see pellet prices plummet. IMO.

 

[Pellet-King]

The price of oil here now is $1.56, down another 11 cents from 1 week ago.

just bought oil @1.38 tuesday, I only buy 100 gallons because buying anymore is foolish right now as the price keep's dropping, heck i might have a $300 heating bill this winter
When I was buying pellet's for $100-$134 a ton for almost 10 yr's I was burning 2 ton per yr.

 

[Pete Zahria]

My point was, anyone can produce pellets with a very small investment.

If you are talking about a start up business, I think you are terribly wrong.

Dan

 

[alternativeheat]

If you are talking about a start up business, I think you are terribly wrong.

Dan

Up in Maine it took years to get local codes and such to pass on property that was already used for mills converted to pellet manufacture. Years. I believe that was in Millinocket.

 

[Deezl Smoke]

If you are talking about a start up business, I think you are terribly wrong.

Dan

Sooooo..........drilling for oil and building a refinery is less expensive?

 

[Peterfield]

Sooooo..........drilling for oil and building a refinery is less expensive?

As the saying goes, when you're in a hole, stop digging. Your last iteration has nothing to do with your first. Recently took in a tour of a pellet plant and nothing about it appeared easy.

 

[rich2500]

speaking of which I wonder what is going on with Pinetree Pellet, haven't heard anything for a while I know they ran into some snags

 

[alternativeheat]

speaking of which I wonder what is going on with Pinetree Pellet, haven't heard anything for a while I know they ran into some snags

Sooooo..........drilling for oil and building a refinery is less expensive?

Lets put it this way, Joe Blo on a shoestring budget isn't doing either one.

 

[rich2500]